Fowler v. Iowa Land Co.

Citations

• 18 S.D. 131
• 99 N.W. 1095
• 1904 S.D. LEXIS 32

Syllabus

<p>1. S. had acted as sole attorney for defendant land company for a number of years, and, as such, negotiated a loan on the bonds of a corporation, secured by a mortgage to a trust company, whose only interest therein was that of trustee for defendant, the principal holder of the lends. S, thereafter took possession of the property mortgaged, and appointed managing agents, who accounted to him for receipts and disbursements, and, on foreclosure proceedings being instituted, he was employed as sole attorney for the trust company, and during such proceedings and the time for redemption retained possession of the property. Held, that S. had authority to employ plaintiffs, who had been attorneys for the mortgagor in the foreclosure proceedings, on behalf of defendant, to take appeals from an order appointing a receiver, and to prosecute such appeals, in order to maintain defendant’s possession of the property during such foreclosure proceedings.</p> <p>2. Where it was shown by the uncontradicted evidence, independent of the testimony of an agent, that he acted as agent and attorney for defendant in taking possession of certain property during foreclosure proceedings, etc., declarations and statements by such agent were admissible to prove the contracts entered into by him with plaintiffs for legal services while acting as defendant’s agent.</p> <p>3. Under Civil Code, § 1641, providing that a trustee cannot enforce any claim against the trust property which he purchases after or in contemplation of his appointment as trustee, an instruction that B. & Co., having purchased certain pledged bonds while acting as manager and agent of a certain corporation, could acquire no interest therein, but that such purchase inured to the benefit of the corporation, was proper.</p> <p>4. Where the services rendered by plaintiffs as attorneys in a former suit were necessary in order to prevent a receiver appointed in that action from retaining possession of the property during the liti